I made the cardinal mistake of not updating my W4 from last year.
I got a refund last year for some education credits and had my withholding allowances set to 8 or some unholy number.
I didn't change it for the new tax year. Yes, this was stupid. Lesson learned.
I realized about a month ago my error and changed my withholding allowances to 0. I now have a tax bill of about $4,863 if my math is correctly.
The irony is, I already have more than enough cash and can pay it off in full. The problem is, I want to avoid an under payment penalty.
From what I've been reading, if I fill before January 31st I may be able to avoid it. But I'm not sure and a bit worried, i'm good at budgeting and have good credit so I can take a penalty blow but I would prefer not to.
Any idea how I can over come this?
I got a refund last year for some education credits and had my withholding allowances set to 8 or some unholy number.
I didn't change it for the new tax year. Yes, this was stupid. Lesson learned.
I realized about a month ago my error and changed my withholding allowances to 0. I now have a tax bill of about $4,863 if my math is correctly.
The irony is, I already have more than enough cash and can pay it off in full. The problem is, I want to avoid an under payment penalty.
From what I've been reading, if I fill before January 31st I may be able to avoid it. But I'm not sure and a bit worried, i'm good at budgeting and have good credit so I can take a penalty blow but I would prefer not to.
Any idea how I can over come this?